|
CHINESE regional carrier China United (CULines), which pulled out of the Asia-Europe lane last December, has now ended its China-US west coast service.
The company notified shippers recently and joins a number of long-haul newcomers in withdrawing from the lane as the Covid-fuelled boom ends.
CULines' last USWC sailing, the chartered 1,800 TEU, Adamastos departed Yantian, with its arrival in Los Angeles expected on June 25.
Market observers told London's Loadstar CULines had made "a pragmatic move in today's market", as current freight levels of just under US$1,400/FEU were inadequate to cover operating costs.
Continuing the service would see CULines lose all it earned income during the pandemic-fuelled boom of 2021-2022 - profits estimated at more than $300 million.
Furthermore, regional carriers, lacking very large ships, do not have the economies of scale to compete against the mainline operators and other players that have reduced their exposure to long-haul routes include Transfar Shipping, TS Lines and SeaLead Shipping.
Shortly before announcing its retreat from Asia-Europe, CULines disclosed the premature termination of long-term charter agreements with fellow China state-owned shipowner Antong Holdings, involving a dozen vessels. Compensation of around $67 million was paid to Antong.
https://www.shippingazette.com/menu.asp?encode=eng
|
Back:
Next:
